I deleted the Miscellaneous Income form hoping to clear that entry out. I added it back being sure to answer that it was a lawsuit settlement and no back wages. TurboTax generated the Miscellaneous Income form again and again, when I do the check on the taxes, it flags an error because there is no Schedule C.
I zeroed out the lawyer fees from Box 10 on the Miscellaneous Income form. When I checked for errors, no error was generated! It seems that if you enter lawyer fees (even though none of them are taxable), TurboTax wants the lawyer fees associated with a Schedule C.
You mentioned I might be able to deduct the lawyer fees by adding it to line 8 on Schedule 1. I already have two entries there, one for the 1099-MISC income and the other is for the unemployment adjustment to income (-10,800) that TurboTax generated. In reading the 1040/1040-SR instructions, it says to put lawyer fees on line 21H and use the code UDC. Is that not the way to do it or is that just another option?
Thank you for your help.
